Halliwells’ creditors join forces for action plan
The largest creditors of failed law firm Halliwells have formed a committee in what could be a precedent to further legal action against the firm’s former partners.
The biggest sum is owed to the firm’s former bank RBS, with which it has £18m debts. As RBS holds a debenture over the LLP’s assets, it is first in line to recover the £10m from the sale of the business.
However, it has been joined by other unsecured creditors on the committee: HM Revenue & Customs, which is owed £4.3m; a German fund run by Credit Suisse Asset Management, the landlord of the firm’s former headquarters at Spinningfields, which is owed £2.4m; ING Lease UK; and the landlord of Halliwells’ Liverpool office, Bruntwood 2000 Beta Portfolio.
“In the end, legal action depends on funding,” said Ben Larkin, insolvency partner at Berwin Leighton Paisner, who is not involved with the matter. “Will the creditors put their hands in their pockets, or will there be such a strong case as to get barristers and lawyers to take it on a CFA [conditional fee arrangement] basis?”
As reported by The Lawyer (15 November), four ex-Halliwells partners are facing legal action from the landlord over unpaid rent at the firm’s former HQ.
Readers' comments (3)
Laughter | 22-Nov-2010 11:20 am
Oh dear, HMRC are in the mix which means Mr Austin's interpretation of the time to pay scheme may get him into some trouble.
I bet those who received the reverse premium money and also trousered the proceeds from the sale of HLI will be a tad worried.
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Anonymous | 22-Nov-2010 12:14 pm
It'll be interesting to see if the creditors committee decide to take a tough line (to the extent of throwing good money after bad) to make it clear to the profession that they're not going to simply write off the money. I suspect the dodgier end of the profession will be looking to the result as an indicator of what they can get away with. The Revenue might decide that they want to send out a stern message that they are not going to be the fall guys for those who take the money and run.
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Anonymous | 22-Nov-2010 12:17 pm
I shall point him toward this article if I see him in court today.
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